Why Should You Consider a Chapter 13 Bankruptcy?
A Chapter 13 provides protection for people who do not qualify for a Chapter 7. The major advantage of a successful Chapter 13 bankruptcy is that the debt that you owe to unsecured creditors is usually wiped out completely, even if those creditors received no payment at all. Some other reasons why debtors file bankruptcy under Chapter 13 are:
- It prevents foreclosure and repossession.
- It provides relief for higher income debtors.
- Debtors usually keep all their secured property, including homes and cars.
- Debtors usually keep all their other assets, including property they would lose if they filed under Chapter 7.
- The court’s “automatic stay” forces debt collectors to cease collection efforts.
- Nearly all unsecured debts are discharged at the end of the Chapter 13 plan.
- Debtors usually pay only a percentage (and sometimes none) of their unsecured debt before receiving a discharge.
- Debtors with nondischargeable debt (like student loans, child support, and certain tax debt) get a break from debt collectors while the plan is in effect.
- Future creditors might be more willing to take a chance on debtors who repaid some debts through Chapter 13 rather than discharging all debt in Chapter 7.
To learn whether a Chapter 13 bankruptcy is the best solution to your debt problems, talk to a bankruptcy attorney at Thomas W. Lynch & Associates, P.C. Call 708-598-5999. You can also fill out our online contact form to start the process of obtaining relief from your unmanageable debt.
“Great bankruptcy attorney. We believed we had a complicated bankruptcy case and met with Mr. Lynch to discuss our case. He communicated clearly what the next steps in filing our Chapter 13 case would be and after we got him our documents, he followed through on what he said he was going to do.” ~ P. Nicholas, bankruptcy client
